[fro0116]

I wouldn't be so sure, there was the rather plausible speculation that the 3% from Robinhood was a loss leader that wasn't meant to last long, in order to drum up hype for the launch. They could very well have been planning to earn the fed rate and fronting the difference for a period of time and then bait & switching (and/or introducing some premium plan to make up the difference).

Also, money market funds, which are generally considered cash-equivalents, don't usually yield north 3% either afaik, and I can imagine putting customers deposits in riskier higher yielding investments could have also have ran foul of banking regulations.

Brex is using neither of these strategies here as far as I can tell, and they're providing a decent amount of transparency into how the funds are going to be handled, so it should be fairly easy for regulators to review. If regulators do take issue with their strategy, I suspect we'll probably hear about it in the news soon enough. In the mean time, it's still an early access product, so it's not like we can use it immediately anyways (I'll definitely be signing up though).